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AAFM Exam CWM_LEVEL_2 Topic 5 Question 90 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 90
Topic #: 5
[All CWM_LEVEL_2 Questions]

Section B (2 Mark)

Ajay is considering to purchase a house which will bring rental income of Rs. 15,000/- p.m at the end of month. Ajay is looking for 12% returns and he is expecting to sell the property after 5 years for Rs. 6 lac. What price Ajay should pay for this property now?

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Suggested Answer: B

by Mauricio at Sep 12, 2024, 11:50 PM

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Fallon
1 months ago
I can already smell the rental income from this property. I'm definitely going with A) Rs. 468,000 - it just makes the most sense to me.
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Aron
1 months ago
Haha, this is like finding the right price for a crystal ball! I think I'll go with B) Rs. 395,000 and hope for the best.
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Gail
18 days ago
I agree with you, B) Rs. 395,000 sounds like a good choice. Let's hope for the best!
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Alease
20 days ago
I'm leaning towards C) Rs. 400,000. It seems like a good balance.
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Casey
23 days ago
I think I'll go with A) Rs. 468,000. It seems like a reasonable price.
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Ardella
2 months ago
This is a tricky one. I'm not sure if I should be considering the future sale price or just focusing on the rental income. I'm going to go with D) Rs. 495,000, just to be safe.
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Maia
22 days ago
It's a tough decision, but I think it's better to be safe and go with D) Rs. 495,000.
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Rossana
1 months ago
I'm going with option D) Rs. 495,000 as well, just to be on the safe side.
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Maira
1 months ago
I'm not sure if the future sale price should have that much weight in the calculation. I would pick C) Rs. 400,000.
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Gilma
1 months ago
I agree, it's important to take into account both factors to make an informed decision.
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Argelia
1 months ago
I think we should consider both the rental income and the future sale price to calculate the price Ajay should pay for the property.
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Rosalia
2 months ago
I agree, it's important to take into account both factors. I would also choose A) Rs. 468,000.
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Glen
2 months ago
I think you should consider both the rental income and the future sale price. I would go with A) Rs. 468,000.
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Talia
2 months ago
Hmm, this seems like a standard time value of money problem. I'm leaning towards C) Rs. 400,000, but I'll need to double-check my calculations.
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Iluminada
1 months ago
I agree, C) Rs. 400,000 makes sense based on the information given.
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Kirk
2 months ago
I think the answer is C) Rs. 400,000 because that would give Ajay the 12% returns he is looking for.
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Flo
2 months ago
This question is all about the present value of future cash flows. I think the correct answer is A) Rs. 468,000.
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Madalyn
2 months ago
I agree with Marshall, A) Rs. 468000 makes sense because it takes into account the rental income and expected selling price.
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Casie
3 months ago
I disagree, I believe the answer is C) Rs. 400000.
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Marshall
3 months ago
I think the answer is A) Rs. 468000.
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